Happy Virtual Portfolio Update

A Happy Virtual Value Portfolio Update

By Dr. Paul Price 

Our Market Shadows Virtual Value Portfolio has performed very well since its inception last October 26. Our total return was been 14.83% versus a 9.19% total for the S&P 500, also including dividends. That’s a 62.4% outperformance over the almost four months we’ve been operating. (See snapshots of portfolio performance at the close on Feb. 19, 13, below. Updated virtual portfolio here.)

We can’t guarantee things will continue on a torrid pace, but it’s been very rewarding so far.

Three of our best winners so far have been Heidrick & Struggles (HSII), Korn Ferry International (KFY) and Kelly Services (KELYA). All three are connected to human resources. Their services range from temporary help to executive search. All three have European operations which made them cheap last fall when we were first buying them at bargain prices.

Since its purchase, HSII is plus 43%. KFY is up 43% and KELYA is ahead by 35%. This illustrates the profitability of buying out of favor issues. Office supply giant Staples (SPLS) is another previously hated stock that moved up nicely on Tuesday. SPLS gained over 14% for the day after merger talks with competitors Office Max (OMX) and Office Depot (ODP) were disclosed. 

Our only new addition to the portfolio this week was Life Time Fitness (LTM). See our detailed article for the reasons why we decided to get into the shares of this health care provider. We now own the stock at $42.23 per share and have written an August $45 put in our Virtual Put Selling Portfolio to get more upside exposure over the coming half-year. 

Finally, there’s been a lot of buying by insiders at Calamos Asset Management, Inc. /DE/ (CLMS)

Look CLMS up at Insider Cow:

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Portfolio as of Feb. 19, 13.

Open Positions

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  1. […] Fed Drives Massive Liquidity Surge, Treasury Says Thank You Ma’am.     Value Exploration: Our Virtual Value Portfolio (stocks) is almost filled up, so we sold some PUTS in our Virtual Put Selling […]

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